The trader’s capital in a single entry system is ascertained by preparing?

A. gross profit
B. statement of affairs
C. suspense account
D. appropriation account

Correct Answer:

Option B – statement of affairs

Explanation

A Statement of Affairs is a document detailing a company’s assets and liabilities. Generally prepared by a liquidator or appointed professional during certain insolvency proceedings, the document is later registered at Companies House, where it becomes available for public view.